Detractors of capitalism decry that it caters to special interests. The opposite is actually true. Just look at what’s happened in the last year.

Most of Wall Street came to government asking for a bailout when the government-created housing bubble popped.

The Big Three automakers also went to Washington for largesse when their customers came to prefer Toyotas and Hondas.

Health insurance companies stand to make a killing if Obamacare passes.

T. Boone Pickens and Al Gore would make millions from environmental legislation.

Ludwig von…

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Very interesting, but of course unscientific*, poll of hybrid vehicle owners over at HybridCarBlog.  It turns out that very few hybrid owners bought their hybrid because of global warming fears:

So far, there have been more than 28,000 responses to the poll and the results are a little surprising. 37 percent of respondents picked foreign oil dependency, 29 percent cool technology, 27 percent car pool lane access, but only 7 percent picked global warming.

Certainly, everyone I know in Northern Virginia who bought…

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Today’s Wall Street Journal further drives home the difficult position in which the United Auto Workers, Chrysler, and General Motors are likely to find themselves as a result of the UAW becoming part owner of GM and majority shareholder of Chrysler. First, the lead editorial notes the political risks inherent in the arrangement:

Some Treasury officials have told the media that 50% government ownership is important to ensure that taxpayers get repaid for the $16.2 billion in Treasury loans. But this…

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The Bush administration’s outline of its automaker bailout package lists some seemingly sensible changes in labor practices that GM and Chrysler need to make. (Ford, to its credit, is seeking private financing instead.)

Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:

Reduce debts by 2/3 via a debt for equity exchange.
Make one-half of VEBA payments in the form of stock.
Eliminate the jobs…

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Last night, the Detroit Big Three bailout package crashed and burned for the best of reasons. To their credit, Senate Republicans refused to abide the United Auto Workers’ cavalier attitude toward further, drastic concessions. Reports The New York Times:

Late Thursday, the Senate did not take up an assistance measure passed by the House, after hours of negotiations between Senate Republicans with the auto companies and the U.A.W. The sticking point apparently was the union’s refusal to agree to lower wage and…

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Apple's 1984 "Big Brother" ad

An article over at Ad Age brings up an angle on the whole auto industry bailout probably not considered much before.  The fact that a yet-to-be-appointed “car czar” will have control over a multibillion dollar advertising budget for the big three.  Under the guise of “oversight,” this would effectively “Create World’s Most Powerful Marketing Exec[utive].”  

The draft rescue plan for Detroit sent to the White House by Congress yesterday calls for the appointment of a “car czar”…

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In the debate about bailing out the Big 3 automakers, it is said that we just can’t allow a bankruptcy. Despite the fact that Chapter 11 bankruptcies have taken place for retailers such as Circuit City and many airlines such as U.S. Airways, autos are said to be different because of the duration of time that people hold on to their cars for.

Horrific senarios are painted of consumers not being able to get parts for their automobiles if manufacturers…

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As the Senate prepares to debate the proposed $25 billion bailout bill for the Big Three Detroit automakers, it’s worth pointing out — as many times as possible — just what this money might be going to pay for. First, as Larry Kudlow, points out, there are uncompetitive salaries.

Here’s a stat from my friend, blogger Mark Perry: Total compensation per hour for the big-three carmakers is $73.20. That’s a 52 percent differential from Toyota’s (Detroit South) $48 compensation (wages + health…

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